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TMI Blog2019 (3) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... editors. In view of the legal position stated above, the IBC, 2016 being a special legislation and by virtue of Section 238 of the IBC, 2016, overrides the provisions of TNPID Act. This view is fortified by the proposition settled in the matter of M/S. Aryarup Tourism Club Resorts Private Limited (in Liquidation) [2017 (6) TMI 608 - BOMBAY HIGH COURT] wherein it has been held that the powers of the competent authority appointed under the Maharashtra Protection of Interests of Depositors (in Financial Establishments) Act, 1999 (MPID Act) and the MPID Court does not supersede or prevail upon the powers of the Official liquidator or of the Company Court under the provision of the Companies Act. Therefore, in the light of the provisions of the IBC, 2016 the proceedings initiated under TNPID Act can legally be taken over by the Resolution Professional in relation to the Corporate Debtor viz. Thiripura Chits Private Limited. Accordingly, the issue framed herein above is answered in affirmative. The competent authority and the investigation officer(s) under TNPID Act including Deputy Superintend Police, Economic offences wing-Il, are directed to hand over all the records of the Corp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licant visited the registered office of the Corporate Debtor in order to take control of the no person was available in the premises. It is learnt from the various sources that the Managing Director and others Directors of the Corporate Debtor were arrested by the Economics Offences Wing-CID, Chennai, who have accused of cheating numerous depositors. The EOW CID registered the case against them under IPC Sections 406 (Criminal Breach of Trust) and 420 (Cheating) and Section 5 of the Tamil Nadu Protection of Interest of Depositors Act (TNPID Act). 4. The Applicant has submitted that books of accounts and other records of the Corporate Debtor were seized by the Economic Offence Wing (EOW) authority and keeping the same under their custody. The Applicant has intimated the EOW department about commencement of corporate insolvency resolution process against the Corporate Debtor and requested to provide the necessary information of the Corporate Debtor so as to enable the applicant to perform his duties -as envisaged under m the provisions of the Insolvency and Bankruptcy Code, 2016, for which EOW replied that the records of the Corporate Debtor can be handed over subject to specific ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d also submitted the chit Deposit passbook for open chit deposit scheme in the name of Thiripura Chits Private Limited' and the case is under investigation. 9. The Respondent has further stated in his report that Mr. P. V. Krishana Prasath (Accused 2), Managing Director/ shareholder, Mrs. K. Sumana (Accused 3), director/ shareholder along with another directors namely Tr. M. E. Venu (Accused 4), Tr. K. Vasu (Accused 5), Tr.M.G.Karumbaiah (Accused 6), Tr.N. Balakrishnan (Accused7), and Tr. Jayapraksh Basavaraj (Accused 8) were running a company and collected deposits in the form of chits in the name and style of Thiripura Chits Private Limited having corporate office at No.36, Jeenis Road, 2nd Floor, Saidapet, Chennai-15 and also operated -various branches throughout Tamil Nadu and other states, i.e., Karnataka, Andhra Pradesh, Telungana, Maharashtra and Pondicherry. They canvassed among the public in Chennai about the various chit deposit schemes. The maturity of amount varying between 10,000/- to They announced such schemes in the form of monthly payment for a fixed period enabling with incentives. It is further submitted that the said company had collected huge amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complaints for the total defaulted amount of 49,57,19,961/- in respective jurisdiction EOW-II. 14. On perusal of the pleadings the legal issue involved is framed as follows: Whether the proceedings pending under the Tamil Nadu Protection of Interest of Depositors Act, 1997 (TNPID Act) can be taken over by the Resolution Professional under the Provisions of the Insolvency and Bankruptcy code, 2016? The above issue seems to have been settled by the catena of judgements passed by the Hon ble Supreme Court. The Hon ble Supreme Court in Innovative Industries limited v/ s. ICICI Bank and Anr., has refereed to Section 238 of the IBC, 2016 which reads as under; The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any insfrument having effect by virtue of any such law. While interpreting the said provision of the IBC, 2016 and Section 4 of the Maharashtra Act, the Apex Court has observed that 'it is clear that the later non-obstante clause of the parliamentary enactment will prevail over the limited non- obstante clause contained in Section 4 of Maharashtra Act. ' Fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Companies Act. Therefore, in the light of the provisions of the IBC, 2016 the proceedings initiated under TNPID Act can legally be taken over by the Resolution Professional in relation to the Corporate Debtor viz. Thiripura Chits Private Limited. Accordingly, the issue framed herein above is answered in affirmative. 17. Besides the above, the reply filed by the Respondent viz. Deputy Superintendent of Police, Economic Offence wing-Il, reveals that chits security deposit amount of ₹ 2.71 cores in Chennai with the District Registrar of Chits were identified, and the same was frozen and the proposal has already been submitted for obtaining ad-interim attachment order from the Government and the same has been obtained on 14.02.2019 and necessary steps is being taken to file the OA before the Hon 'ble TNPID Court against G.O. Ms. No. 73 Home(PoIice XIX) Department, dated 31.01.2019. The said ad-interim attachment order has been passed during the moratorium which has been declared vide order dated 17.09.2018. The ad-interim attachment order is in violation of the provisions of the Section 14(1)(a) of the IBC, 2016. Therefore, the said ad-interim order dated 14.02.2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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